...that is originated in California, USA. Ray Kroc became a franchisee of the McDonald brothers (Dick and Mac) and began opening new restaurants, buying all the rights to the McDonald's concept in 1961 for $2.7 million. McDonald’s Corporation give the franchise to Golden Arches Restaurant Sdn Bhd to operate McDonald’s restaurants in Malaysia and the first outlet was opened in April 1982 at Jalan Bukit Bintang, Kuala Lumpur. McDonalds mission is “To be our customers' favourite place and way to eat” and their vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. The operations in McDonald’s Malaysia are affected with the government regulation on the regulation of fast food operation. As a certified fast food operator, there are many regulations and procedures that McDonalds should follow. For example is the Halal certification that becomes a concern to Muslim consumers. McDonalds protect its integrity and consumer confidence by ensuring all materials and process are as claimed or must followed. The economic condition and growth of the country also is an important indicator to the demand of products that McDonalds offered. As the food priced slightly above normal foods, not many people will have the income range to consume the products. McDonalds faced government regulations on tax of profit where it gains from the operation...
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...BUYERS 13 1.1.12 BARGAINING POWER OF SUPPLIERS 14 SWOT Analysis 14 RECOMMENDED STRATEGIES 16 Conclusion 16 APPENDIX 17 References 18 Executive Summary and methodology The goal of this report is to give a brief overview of the primary external influences on McDonalds in the fast food industry of Germany by using the PESTEL framework (refer to Appendix 1 for Corporate Profile). In the second part of the report, the reader is instructed about the changing competitive environment based on the theoretical framework of Porter’s five forces modell and the SWOT analysis of McDonald’s Germany. The analysis demonstrates the influences on the company’s policies and the effectiveness of the organization’s response. This is followed by recommendations on how to improve the current situation and give an overview of McDondals alternative strategy approach to increase their market share as well their profitability. TASK 1 1. PESTLE ANALYSIS According to the PESTLE analysis, an understanding of the environment – macro forces – is essential for a rigorous and meaningful assessment of decision-making and operations. (Marketing Concepts & Strategies. P. 106) The PESTLE framework categorises environmental factors into six highlight key factors: Political, Economic, Social, Technological, Legal and Ecological. This range of factors underlines that the environment does not only include economic forces: There is...
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...count 897) From its humble beginnings the McDonalds organisation has continuously looked to engage everyone within the business to help identify and solve problems and has made the elements of leadership, participation, team-based structures, strong adoptive cultures, employee empowerment and the open sharing of information key pillars in which it has built itself from the ground up. Sustainable development has also been at the forefront of the McDonalds organisation and is an integral part of the continued success of the organisation and its ability to weather the storm from critics regarding the quality of its “fast food” in recent years and stay ahead of its competitors. McDonalds has a rich heritage of leadership and investing in its leaders. In 1961 Hamburger University was established in Elk Grove, Ill to train restaurant staff and management in the consistent procedures of the restaurants operations and create a culture that has continued. The 2008 CEO Jim Skinner worked his way up from Trainee Manager. Skinner is also a man of values and ethics: When McDonald’s was blamed for the obesity problem, he helped direct the company to take responsibility and help create a solution rather than pass the blame. Thus, Skinner can be seen as a moral leader. McDonalds prides itself on leading from the top down but also encouraging ideas and innovation from the bottom up. Ray Kroc has encouraged a participative strategy at McDonalds from the beginning with some of its main menu...
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...INTRODUCTION McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.[ McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit. Since 2008 – 2012 the growth stage service life cycle 69.95% for the past 5 yrs and is still growing. Worldwide ratio is 3:54 restaurants globally Average 12% growth for the last 5 yrs Strategic – SLC McD is in Growth as we can have more new outlets, Exceeds USD$24 billion in revenue...
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...SWOT Analysis | What is SWOT Analysis? | Examples of SWOT Analysis SWOT analysis was originally conceived and developed in the 1960s and its basic organising principles have remained largely unchanged in the field of strategic management since that time (Kotler et al., 2013). It is, as Ghazinoory, Abdi and Azadegan-Mehr (2011) comment, a systematic framework which helps managers to develop their business strategies by appraising the internal and external determinants of their organisation’s performance. Internal environmental factors include leadership talent, human resource capabilities, the company’s culture as well as the effectiveness of its policies and procedures. In contrast, external factors include competition, government legislation, changing trends, and social expectations (Johnson, Scholes and Whittington, 2008). The SWOT analysis framework involves analysing the strengths (S) and weaknesses (W) of the business’s internal factors, and the opportunities (O) and threats (T) of its external factors of performance (Ghazinoory, Abdi and Azadegan-Mehr, 2011). Through this analysis, the weaknesses and strengths within a company can correspond to the opportunities and threats in the business environment so that effective strategies can be developed (Helms and Nixon, 2010). It follows from this, therefore, that an organisation can derive an effective strategy by taking advantage of its opportunities by using its strengths and neutralise its threats by minimising the impact...
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...a Family Individuals addicted to alcohol are threatened with increased risk of health problems, including liver cirrhosis, cardiovascular diseases, and fetal abnormalities. Additionally, substance abuse can lead to automobile collisions, violence, and injuries. Alcohol can influence worker’s productivity, family problems, or school performance. According to Alcohol Research and Health (2000), “the United States and other countries have expended considerable effort throughout this century to develop and refine effective strategies to limit the negative impact of alcohol” (p. 5). The epidemiological research has also revealed positive correlation between substance abuse and coronary heart disease. The influence on physical health is evident, but there are many other social factors that pose risks to the surrounding communities and families (Alcohol Research and Health, 2000). What is more important is that it creates significant problems within the family in terms lack of understanding and communication. Heavy drinking and substance abuse is a tangible risk factor creating serious consequences for health and, therefore, it is also the main contributor to the global disease expansion. Indeed, alcohol can become the leading cause for over 30 health-related risks and factors. Such risks as disability, disease, and mortality are also among the major problems which are treated by the World Health Organization because of the detrimental influence of alcohol consumption on the overall...
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...consisting of hamburgers and cheeseburgers. The menu includes the following Big Mac Quarter Pounder with Cheese Filet-O-Fish Several chicken sandwiches French fries Chicken Mc Nuggets Salads Low-fat shakes, Mc Flurries Sundaes. Cones Pies Cookies Soft drinks as well as other beverages COMPETITION McDonald’s restaurants compete with international, national, regional and local retailers of food products. McDonald’s competes on the basis of: • Price • Convenience • Service, by offering quality food products. Its competitors include: • • • • • Burger King Wendy’s Hardees Taco bell and KFC ORGANIZATIONAL ANALYSIS EXTERNAL ENVIRONMENT POLITICAL ECONOMICS SOCIAL/CULTURAL TECHNOLOGY LEGAL ENVIRONMENT • • • • • • • SWOT FRAMEWORK ANALYSIS STRENGTHS Leader in the Quick Service Sandwich Industry, Brand Recognition Strongest International Presence and Highest Worldwide Sales Real-Estate Holdings Easily Recognizable Product Variety of Sources of Income Franchise Business Model WEAKNESSES • Continuous Struggles in Offering Value-Priced Items and Expensive Items • High Employee Turnover Rate OPPORTUNITIES • • • • Growth in Global Food-Service Industry Initial Public Offerings...
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...McDonald's SWOT analysis and recommendations SWOT Analysis: 1. Strengths: - Strong brand name, image and reputation McDonalds has built up huge brand equity. It is the no 1 fast food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. The image of McDonalds is recognized everywhere. This brand is in top ten of the most powerful brand names in the world with Coca-Cola, Nokia or GM. - Large market share McDonalds is considered as the largest player in size and global reach. When Wendy’s or Burgers King are losing market share in 2006, McDonalds still increases its market share. Market share of McDonalds in the recent time is about 19% while Yum!Brands is 9% and both Wendy’s and Burger King is 2%. - Specialized training for managers McDonalds is very serious on training managers. This company has its own program to train managers the most professionally, which is called Hamburger University. As a result, McDonalds has many good managers who can help company development well. - McDonalds Plan to Win McDonalds customer – focused Plan to Win provide a common framework for its global business yet allows for local adaptation. Through the execution of initiatives surrounding the five elements of its Plan to Win – People, Products, Place, Price and Promotion – McDonalds has enhanced the restaurant experience for customers worldwide and grown comparable sales and customer visits in each of the last eight years. This Plan, combined...
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...Introduction Working in corporation or large companies is very popular nowadays because large companies are often with the large scale, huge capital and professional operation. Human resource has significant role in the organization. Human resource management is concerned with the people dimensions in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to high level of performance, and ensuring that they continue to maintain their commitment to the organizational objectives. This is true regardless of the type of organization government, business, education, health, recreation, or social action. Getting and keeping good people is critical to the success of every organizations that are able to acquire develop stimulate, and keep outstanding workers will be both effective and efficient. Therefore, in this assignment, there are series of functions in human resource management as they are job design, job analysis, human resource planning, recruitment, training and development, employee movement, and welfare administration will be identified and analyzed from the perspective of an human resource management manager. 1. Understanding the difference between personnel management & Human Resource Management 1.1 Difference between Personnel Management And Human Resource Management Human resource management is the new version of personnel management. There is no any watertight...
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...companies can exert some pressure on these factors, particularly any political factors through the intelligent use of political lobbying. Proper understanding of these factors allows the organisation to highlight areas of business opportunity when combined with proper understanding of the business’ strengths, and also potential threats to the business when combined with a proper understanding of the firm’s weaknesses (Baines et al, 2011). Thus, for effective strategic planning, analysis of the external factors is the most important step before performing an analysis of the business’ intrinsic strengths and weaknesses through a SWOT analysis. Political The fast food industry is often a target for government initiatives aimed at improving health and reducing obesity, particularly in European countries. In 2003, after the publication of a report by the Scientific Advisory Committee on Nutrition (SACN) on the link between general levels of salt intake among the UK population and heart...
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...McDonald Dessert Industry Report McDonald’s Dessert INDEX Page Reference Part I. Introduction ITEM1 Analysis McDonald’s………………………………………………...01 ITEM2 Issues of McDonald’s…………………………………………….......02 ITEM3 Executive Summary of McDonald’s………………………………....05 Part II. Industry Analysis ITEM1 Definition of McDonald’s Desserts………………………………….06 ITEM2 Size & Trend Projection of McDonald’s Dessert…………………….07 ITEM3 Segments & Divisions of McDonald’s Dessert………………………10 ITEM4 Major Competitor with McDonald’s Dessert…………………………11 ITEM5 Definition of Analysis model to be untilized…………………………13 Part III. Conclusions and Recommendations ITEM1 Conclusions………………………………………………………......18 ITEM2 Recommendations……………………………………………………21 Part IV. Key Next Steps………………………………………………………......22 Part V. APPENDIX……………………………………………………..................23 Part I. ITEM 1. Introduction Analysis McDonald’s McDonald’s, the most famous restaurant in the world, ranked No. 6 and No. 186 for Forbes’s “Valuable Brands” and “Global 2000”. In 1940, McDonald brothers, Dick and Mac, began an undertaking in San Bernardino. They were famous for offering food quickly and drivethru window to their consumers, then Kroc bought the world rights in 1961, and there are more than 100 countries include the United States, Europe, and Asia-Pacific, Middle East and Africa, over 35,000 restaurants around the world, serving nearly 70 million people everyday. As McDonald’s proclaims, the “most successful food service...
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...Management Information Systems for Tourism Hospitality Organisation Using Management Information Systems for Tourism Hospitality Organisation CONTENTS Introduction to the Project 2 Introduction to McDonald 3 Role of MIS within Tourism and Hospitality context 4 Importance of Management Information System for Hospitality and Tourism Industry 6 Use of IT System in an Organization to attain Competitive Advantage 7 Type of Database and Data warehousing in Tourism and Hospitality 9 Use of E-Commerce and MIS in the Industry 11 System Design Requirements of Tourism and Hospitality Business 14 Use of IT to Support Customer Relation Management 16 Role of Enterprise Resource Planning in Tourism and Hospitality 18 IT Security Issues within the Tourism and Hospitality Industry 20 Ethical and Privacy Issues on Use and Storage of Data. ...
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...INDIVIDUAL ASSIGNMENT COMPETITIVE ANALYSIS Strategic analysis and Strategic Analysis tools Name : Eduardo Christian Rodriguez Munoz – 30118825 Subject : Competitive Analysis Course Code : BUMKT5922 Lecturer : Sally-Anne Leigh Due : 8 June 2014 Word limit : 2271 SUMMARY CONTENS SUMMARY CONTENS 1 EXECUTIVE SUMMARY 3 INTRODUCTION 4 EXTERNAL ENVIRONMET ANALYSIS 5 Fast Food industry analysis 5 PESTLE analysis 5 Political and Legal 5 Economical 6 Social 6 Technological 7 Environmental 8 Porter’s Five Forces Framework 8 Threats of new entrants 8 Bargaining Power of Buyers 9 Bargaining power of suppliers 9 Threat of Substitutes 9 Intensity of Rivalry among competitors 10 Key Success Factors in fast food industry 10 Branding 10 Location 11 Speed 11 Efficiency 11 INTERNAL ENVIRONMETS ANALYSIS – THE FIRM 11 Subway - Strengths and Weaknesses Analysis 11 Subway Strengths 12 Subway Weaknesses 12 Subway Analysis 12 Subway - Key resources, capabilities and competencies 13 Subway – Resources tangibles 13 Subway - Intangibles 13 Subway Human Resources 14 Subway – Porter value chain 14 Firm infrastructure 14 Human Resource 14 Technology 14 Inbound logistics 15 Outbound logistics 15 Marketing and Sales 15 Service 15 OVERALL ANALYSIS OF SUBWAY 16 CONCLUSION 18 REFERENCING 19 EXECUTIVE SUMMARY The following report shows an analysis of the real competitive environment into...
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...BUS 2043 BUSINESS MANAGEMENT TABLE OF CONTENTS NO. | CONTENTS | PAGES | 1. | 1.0 Introduction of business management | 3 | 2. | 2.0 Background of the company 2.1 Type of company 2.2 Company structure 2.3 Products and services | 4-9 | 3. | 3.1 Organizational Environments and Cultures 3.1.1 General Environment 3.1.1.1 Economy 3.1.1.2 Technological Component 3.1.1.3 Sociocultural Component 3.1.1.4 Political Component3.2 Ethics and Social Responsibility3.3 Organizational Strategy 3.3.1 Five Industry Forces3.4 Designing Adaptive Organizations 3.4.1 Departmentalization | 10-18 | 4. | 4.0 Describe how the organization implements the selected topic in its operations.4.1 Organizational Environments and Cultures 4.1.1 General Environment 4.1.1.1 Economy 4.1.1.2 Technological Component 4.1.1.3 Sociocultural Component 4.1.1.4 Political Component4.2 Ethics and Social Responsibility4.3 Organizational Strategy 4.3.1 Five Industry Forces4.4 Designing Adaptive Organizations 4.4.1 Departmentalization | 19-25 | 5. | 5.0 Conclusion5.1 Summary of the analysis | 26 | 6. | 6.0 List of References | 27-28 | 1.0 Introduction As everyone knows that it is not easy to start up a Business and also manage a Business well because started up a Business need to go through a lot of challenges from different...
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...Virtual Campus – Pakistan INTRODUCTION OVERVIEW OF FAST FOOD INDUSTRIES The food industry is on a high as Indians continue to have a feast. Fueled by what can be termed as a perfect ingredient for any industry - large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. An increasing number of international fast food chains rushing to India is because all of them see tremendous potential in for this type of business. The large upwardly mobile population in the urban areas tend to eat out more often or business or for leisure. The various players operating in India are the well-established Indian chains like Nirula's, Haldiram's and multinational companies like McDonalds, Pizza hut, Domino's pizza, etc. In addition to these, apparently some of the best known international food chains are looking at India. Among them are Great American Disaster, The Burger King, Mexican food chain Tacogrill, Move-n-pick, etc. are some of them to name. The players are fighting on products, pricing, positioning and trying to convert their first trials into regular purchase by providing delightful service quality. The focus is on product quality and standardization on taste. Consistency is the key, as its standardization in fast food as the consumer is short on time and wants to satisfy his taste buds with a consistent taste experience. Beyond this each player has its own strategy to expand consumer base. * Some feel...
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